Bitcoin has shown incredible resilience by absorbing the impact of heavy selling from early holders and still trending above $100,000.
The pioneering cryptocurrency is down 2.6% today, giving up all of last weekend's gains. BTC soared from $108,350 on Friday to $111,200 on Sunday, but has not been able to break above $108,000 at the time of writing.
Notably, October ended in the red for the first time since 2018 due to flat price movements. Bitcoin It recorded a 3.87% decline last month, ending a six-year upward trend.
Notably, this disposition affected not only Bitcoin, but also the broader cryptocurrency market. For perspective, as whales liquidated their BTC, long-term holders of XRP were liquidated as well. Selling for an average of 260 million XRP per day.
Market current situation
Notably, QCP highlighted Bitcoin's resilience in maintaining key support levels. in spite of More than $43 billion worth of trash For legacy holders, Bitcoin remains above the psychological price mark of $100,000.
Currently, the cryptocurrency market is flat. Analysts at crypto trading platforms suggested that this situation could continue until whale sales subside. Volatility has increased slightly over the past week, with traders increasing their exposure to put positions. However, the market bias indicates caution among the bears for further declines in Bitcoin.
Additionally, the amount of leverage suggests caution, as futures open interest has subsided since the October 10 crash. Funding rates are also flat as investors stay on the sidelines to watch the next market move.
Corporate companies are also slowing down the pace of acquiring Bitcoin. For context, Strategy purchased just 778 BTC in October, which represents a decrease of approximately 78% from its September purchases.
The outflow of funds from Bitcoin ETFs has further strengthened the sense of caution. Investment vehicles recorded $799 million in outflows last week, with BlackRock alone selling $403 million in BTC.
Another Bitcoin correction or something deeper?
Meanwhile, the cautious tone and constant whale sales cast doubt on the near-term trajectory of Bitcoin's price. Will Bitcoin continue to fall, potentially leading to a crypto winter, or will it rebound to higher prices?
Now, QCP emphasized that subsequent price trends remain uncertain. Mixed sentiment is the main reason for this uncertainty, even though whale sales and inflows from institutional investors are currently modest.
This is why many suggest this cycle is different. Such whale activity would definitely have signaled the end of the bull cycle. However, institutional implementation continues to strengthen the market's foundations.
Interestingly, prominent crypto players remain optimistic that Bitcoin will reach new highs in the near term. Michael Saylor believes Bitcoin will “wear out” to $150,000 by the end of the year, while Bitmine's Tom Lee predicts it will reach $250,000.
